Sharp profit taking has experienced across gold and silver.Both have corrected nearly 10% within 2 days.There is a American federal reserve meet tomorrow and investors are cautious about their holdings in precious metals.Speculators have cut their long positions ahead of this event.

1.QE3: Quantitative easing means shortly more printing of money and introduce more paper currency in the system.There have already 2 rounds completed.This is done to enhance liquidity in the syatem and more job creation.

2.Inflation: Comments about inflation are more important for silver.If there are indications about rise in inflation,it will be positive for silver and gold.Both have remained preferred hedge against inflation.

3.Federal reserve rates:As already declared by Fed,fed rates will be as low to 0.25% at least till mid 2013.